At the Copenhagen climate conference, South Africa made a conditional commitment to significant cuts in greenhouse gas emissions which would result in reductions below the current baseline of 34% by 2020 and 42% by 2025. These reductions are ambitious and are unlikely to be met without some form of domestic market mechanism or carbon pricing system in place.
In essence, carbon pricing means any regulatory system that ensures that a price for the emissions of greenhouse gases becomes embedded throughout the economy. A key argument for carbon pricing is that price signals rely on the flexibility of market forces, rather than direct regulation, to promote efficient emissions reductions.
Mike Goldblatt of pdg explains more…..
